-- Norwegian oil company Equinor (EQNR) has extended supplier agreements for drilling and well services totaling around 17 billion Norwegian krone ($1.84 billion), it said on Monday, contracts the company says will help maintain output from the Norwegian continental shelf.
The company said it was exercising one-year options under the three contracts and two-year options under 18 corporate framework agreements for specialist services linked to these deals.
The latter specialist services are worth about 4.3 billion krone over two years and the drilling and well service agreements about 8.3 billion.
The contracts were awarded to Baker Hughes Norge, Halliburton and SLB Norge while these companies plus another 15 suppliers have been awarded the agreements for specialist service provision.
Equinor said the services these companies provide are of growing importance given the maturity of the shelf, meaning more work is required there to sustain production levels.
The company aims to be approach 2035 with output of around 1.2 million barrels a day and it estimates about 70% of this will come from new wells by then, it said.